Upheaval in agriculture: Financial expert warns of changes that threaten existence

Upheaval in agriculture: Financial expert warns of changes that threaten existence

According to a report by amp.dw.com, farmers in Germany are demonstrating against the planned tax relief for farmers. At the same time, current studies show that the number of agricultural businesses in Germany will decline by more than half by 2040. Small farms are increasingly under cost pressure and have to give way to large industrial companies. Environmental protection requirements, the shortage of skilled workers and the lack of succession planning place additional strain on farms.

Niche as an opportunity

According to the DZ Bank study, the number of farms will fall to around 100,000 by 2040, while the average size of the farms will more than double. However, the cooperative idea and specializations such as organic farming offer opportunities in this upheaval.

Extensive support for farmers

Despite the consequences of the blockades, 68 percent of German citizens surveyed show understanding for the farmers' actions. Even the climate protest alliance “Fridays for Future” expresses understanding for the farmers’ protests. Federal Finance Minister Christian Lindner and top politicians from the ruling parliamentary groups want to speak to the farmers' associations.

The combination of the declining number of farms, increasing cost pressure and the upheaval in agriculture points to far-reaching changes in the financial sector. The development towards larger farms and specializations such as organic farming will have an impact on the financing of farms and investment opportunities. The political support that farmers receive in the form of scheduled meetings and discussions could also have an impact on tax benefits and subsidies provided to farmers. The entire agricultural industry is facing significant challenges that financial experts must also keep an eye on.